Exhibit 99.1
 
 For release at 6:30 a.m.
 Contact:
 DUSA Pharmaceuticals Reports
Second Quarter 2008 Corporate Highlights and Financial Results
 Q2 Levulan® Kerastick® Revenues up 39% year over year;
Q2 Non-GAAP loss improves 88% year over year to ($0.2) million
 WILMINGTON, Mass.  August 8, 2008 ® ®
 Second Quarter 2008 Financial Results:
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Year-to-Date 2008 Financial Results:
 ® ® ®
    Other Updates:
 
    
    Phase IIb Acne Trial Update.
 
    
    At the end of Q108, patient accrual was completed in the Phase IIb clinical
trial of Levulan® PDT for the treatment of moderate to severe acne. As of
the end of Q208, all patients in the study had completed treatment. The blinded data
from the study is currently being compiled for analysis. The Company expects to report
top-line results in the Fall of 2008.
 
    
    Nicomide®.
 
    
    On July 18, 2008, the Company announced that Nicomide®, a
vitamin-mineral product currently prescribed by dermatologists, will no longer be
manufactured and marketed as a prescription product. The decision comes as a proactive
action in response to discussions with the Food and Drug Administration (FDA) regarding
the marketing of unapproved drugs. The Company is currently taking steps to bring the
product into compliance with DSHEA (Dietary Supplement Health and Education Act)
labeling. Nicomide® represented the substantial majority of DUSAs Non-PDT
revenues in both the three and six-month periods ending June 30, 2008. The Company
expects both the price and volume of the Nicomide® DSHEA labeled




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product to be considerably less than historical Nicomide® levels. In
addition, the Company continues to explore opportunities to license or sell the product.
 
    
    Office Closings.
 
    
    In an effort to consolidate operations, the Company plans to close both its
Valhalla, NY and Toronto, Canada offices effective October 31, 2008. The majority of
the functions previously performed at these satellite offices will be transitioned to
DUSAs corporate headquarters facility in Wilmington, MA over the next few months.
 Management Comments:
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 ® ® ®
 ®




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Three-months ended June 30,
    
    
    Six-months ended June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)PDT Drug & Device Product RevenuesKerastick® Product Revenues:United States
    
    $
    4,572,000
    
    
    $
    3,461,000
    
    
    $
    9,346,000
    
    
    $
    7,185,000Canada
    
    
    218,000
    
    
    
    192,000
    
    
    
    377,000
    
    
    
    393,000Korea
    
    
    159,000
    
    
    
    
    
    
    
    524,000
    
    
    
    Rest of World
    
    
    133,000
    
    
    
    
    
    
    
    190,000
    
    
    
    Subtotal Kerastick® Product Revenues
    
    
    5,082,000
    
    
    
    3,653,000
    
    
    
    10,437,000
    
    
    
    7,578,000BLU-U® Product Revenues:United States
    
    
    347,000
    
    
    
    380,000
    
    
    
    822,000
    
    
    
    946,000Canada
    
    
    
    
    
    
    29,000
    
    
    
    
    
    
    
    94,000Subtotal BLU-U® Product Revenues
    
    
    347,000
    
    
    
    409,000
    
    
    
    822,000
    
    
    
    1,040,000Total PDT Drug & Device Product Revenues
    
    
    5,429,000
    
    
    
    4,062,000
    
    
    
    11,259,000
    
    
    
    8,618,000Total Non-PDT Product Revenues
    
    
    2,683,000
    
    
    
    2,800,000
    
    
    
    4,783,000
    
    
    
    4,921,000TOTAL PRODUCT REVENUES
    
    $
    8,112,000
    
    
    $
    6,862,000
    
    
    $
    16,042,000
    
    
    $
    13,539,000




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June 30,
    
    December 31,2008
    
    2007(Unaudited)ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    2,978,722
    
    
    $
    4,713,619Marketable securities
    
    
    19,721,895
    
    
    
    18,311,650Accrued interest receivable
    
    
    175,535
    
    
    
    97,243Accounts receivable, net
    
    
    2,205,451
    
    
    
    2,667,178Inventory
    
    
    2,831,488
    
    
    
    2,672,105Prepaid and other current assets
    
    
    1,669,375
    
    
    
    1,843,873TOTAL CURRENT ASSETS
    
    
    29,582,466
    
    
    
    30,305,668Restricted cash
    
    
    172,418
    
    
    
    170,510Property, plant and equipment, net
    
    
    2,123,288
    
    
    
    2,142,658Deferred charges and other assets
    
    
    215,861
    
    
    
    273,404TOTAL ASSETS
    
    $
    32,094,033
    
    
    $
    32,892,240LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESAccounts payable
    
    $
    104,872
    
    
    $
    1,213,867Accrued compensation
    
    
    677,587
    
    
    
    491,529Other accrued expenses
    
    
    3,343,535
    
    
    
    3,322,642Deferred revenue
    
    
    937,269
    
    
    
    1,256,494TOTAL CURRENT LIABILITIES
    
    
    5,063,263
    
    
    
    6,284,532Deferred revenues
    
    
    4,241,844
    
    
    
    2,918,850Warrant liability
    
    
    1,138,733
    
    
    
    1,262,600Other liabilities
    
    
    285,729
    
    
    
    319,736TOTAL LIABILITIES
    
    
    10,729,569
    
    
    
    10,785,718SHAREHOLDERS EQUITYCapital stock
Authorized: 100,000,000 shares;
40,000,000 shares designated as common
stock, no par, and 60,000,000 shares
issuable in series or classes; and 40,000
junior Series A preferred shares. Issued
and outstanding: 24,078,610 and
24,076,110 shares of common stock, no
par, at June 30, 2008 and December 31,
2007 respectively
    
    
    151,652,943
    
    
    
    151,648,943Additional paid-in capital
    
    
    6,574,903
    
    
    
    5,885,353Accumulated deficit
    
    
    (137,023,416
    )
    
    
    (135,600,484
    )Accumulated other comprehensive loss
    
    
    160,034
    
    
    
    172,710TOTAL SHAREHOLDERS EQUITY
    
    
    21,364,464
    
    
    
    22,106,522TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    32,094,033
    
    
    $
    32,892,240




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Three-months ended June 30,
    
    
    Six-months ended June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)Product revenues
    
    $
    8,112,239
    
    
    $
    6,862,198
    
    
    $
    16,041,739
    
    
    $
    13,539,038Cost of product revenues and royalties
    
    
    1,787,694
    
    
    
    1,776,491
    
    
    
    3,488,011
    
    
    
    3,932,643Gross margin
    
    
    6,324,545
    
    
    
    5,085,707
    
    
    
    12,553,728
    
    
    
    9,606,395Operating costs:Research and development
    
    
    1,375,302
    
    
    
    1,576,909
    
    
    
    3,561,511
    
    
    
    3,103,013Marketing and sales
    
    
    3,496,233
    
    
    
    3,309,583
    
    
    
    6,553,434
    
    
    
    6,840,290General and administrative
    
    
    2,325,137
    
    
    
    2,832,576
    
    
    
    4,692,961
    
    
    
    5,856,025Net gain on settlement of litigation
    
    
    (47,825
    )
    
    
    
    
    
    
    (283,425
    )
    
    
    Total operating costs
    
    
    7,148,847
    
    
    
    7,719,068
    
    
    
    14,524,481
    
    
    
    15,799,328Loss from operations
    
    
    (824,302
    )
    
    
    (2,633,361
    )
    
    
    (1,970,753
    )
    
    
    (6,192,933
    )Other income:Other income, net
    
    
    217,100
    
    
    
    155,954
    
    
    
    423,952
    
    
    
    344,598Gain on change in fair value of warrants
    
    
    468,411
    
    
    
    
    
    
    
    123,869
    
    
    
    Net loss
    
    $
    (138,791
    )
    
    $
    (2,477,407
    )
    
    $
    (1,422,932
    )
    
    $
    (5,848,335
    )Basic and diluted net loss per common share
    
    $
    (0.01
    )
    
    $
    (0.13
    )
    
    $
    (0.06
    )
    
    $
    (0.30
    )Weighted average number of common shares
    
    
    24,078,610
    
    
    
    19,487,485
    
    
    
    24,078,514
    
    
    
    19,483,796




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Use of Non-GAAP Financial Measures
   Three-months ended June 30,
    
    
    Six-months ended June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)GAAP net loss
    
    $
    (138,791
    )
    
    $
    (2,477,407
    )
    
    $
    (1,422,932
    )
    
    $
    (5,848,335
    )Stock-based compensation (a)
    
    
    357,912
    
    
    
    475,514
    
    
    
    689,550
    
    
    
    717,698Gain on change in fair value of warrants (b)
    
    
    (468,409
    )
    
    
    
    
    
    
    (123,869
    )
    
    
    Non-GAAP adjusted net loss
    
    $
    (249,288
    )
    
    $
    (2,001,893
    )
    
    $
    (857,251
    )
    
    $
    (5,130,637
    )Non-GAAP basic and diluted net loss per
common share
    
    $
    (0.01
    )
    
    $
    (0.10
    )
    
    $
    (0.04
    )
    
    $
    (0.26
    )Weighted average number of common shares
    
    
    24,078,610
    
    
    
    19,487,485
    
    
    
    24,078,514
    
    
    
    19,483,796
 
 (a)
    
    Stock-based compensation expense resulting from the application of SFAS 123(R).(b)
    
    Non-cash gain on change in fair value of warrants.




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